Rebate/exemption of Swatchh Bharat Cess.

[Narendra Soni]

Dear Experts,

Please suggest,

1 - exe mption of service tax on transport of export goods by road (GTA) is available to exporter under Notification No.31/2012-ST dated 20.06.2012, Is this exemption is also applicable for SBC (Swachh Bharat Cess).

2. Rebate of service tax paid on services used for export of goods is available to exporter under Notification No.41/2012-ST dated 29.06.2012, Can we also claim rebate of SBC (Swachh Bharat Cess).

Please suggest.

Thanks N Regards

[MADAN RAHEJA]

Dear Sir,

In terms of Proviso to Notification No. 22/2015-S.T., dated 6-11-2015 Swachh Bharat Cess shall not be leviable on services which are exempt from service tax by a notification issued under sub-section (1) of section 93 of the Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994. Accordingly, in my view reply to your query should be as under:-

1. Since Notification No.31/2012-ST dated 20.06.2012 has been issued under Section 93 of Finance Act, 1994, SBC is not leviable.

2. Notification 41/2012-ST dated 29.06.2012 has not been issued under Section 93 ibid but under Section 93A, no exemption for SBC is available. Rebate is also not available as there is no mandate in aforesaid notification

[Narendra Soni]

Thanks Mr.Raheja,

I am agree with you.

Regards.

[DR.MARIAPPAN GOVINDARAJAN]

Clear explanation is given by Shri Raheja.

Resp. Sir,

can we claim the refund of SBC & KKC under Notification 41/2012, after new notification 03/2016. please help.

NITIN BHERE

AI Summary

Swachh Bharat Cess exemption: not leviable where service is exempt by notification; rebate does not automatically cover SBC.
Swachh Bharat Cess is not leviable on services that are exempt from service tax by a notification issued under the statutory exemption power; transport of export goods exempted by such a notification is therefore outside SBC. By contrast, a rebate granted under a different statutory mechanism does not automatically exclude SBC or entitle rebate/refund of SBC unless the rebate instrument explicitly includes SBC.